Which of the following is considered a leverage ratio?
A) Debt ratio
B) Return on total assets
C) Profit margin on sales
D) Conversion ratio
E) Inventory turnover

Question

Quizplus · Accepted Answer

The debt ratio is a leverage ratio that indicates the proportion of a company's assets that are financed by debt. It compares a company's total debt to its total assets, providing insight into how heavily the company relies on borrowed funds.

Which of the Following Is Considered a Leverage Ratio